Region: South Asia
Country: Singapore
Sector: Transportation
Keywords: Innovative Revenues for Infrastructure, Light rail transit
Document Link(s):
Document Summary:
The website introduces Singapore's new rail financing framework.
Document Details:
To deliver reliable train services for commuters in a financially sustainable manner, LTA and SBS Transit (SBST) have concluded the review of the NRFF for the Downtown Line (DTL) . Since 1 January 2022 , DTL has transitioned to NRFF version two which is applied to the majority of other rail lines.
Under the NRFF version two, LTA strengthened both the profit and risk-sharing mechanisms to reduce commercial volatility for the operator, while calibrating the revenue risk borne by the Government. If ridership turns out much lower than projected and the financials of the operator suffers as a result, LTA shares some of the shortfalls in fare revenue and profits. Conversely, if profits outperform expectations, there is a greater component of profit-sharing, the operator will pay an increased licence charge that is channelled into the Railway Sinking Fund to be used for the renewal of operating assets. This also effectively caps the operator’s profit margins.
Updated: August 1, 2023